Do I need to review the carnage? Fine, I’ll do it. And, I’ll tell you where the money is flowing and why you’d be an idiot to buy into that gambit.
Here are the leaders to the downside in tech. You’ll notice the best and hottest sectors are the one’s doing the worst.
Conventional wisdom might suggest to avoid tech; however, according to our mean reversion algorithms, now might be a good time to step him. Obviously, a “this time is different” mindset often infects the psyche of traders during periods of duress. However, it rarely is any different from previous sell offs. Human behavior repeats itself and history rhymes.
The market breakdown for the day. Losses are contained in tech.
Leaders in tech, specifically FAANG, bearing the brunt of the sell off — now lower by 2.7%.
Most notably, the SAAS sector has been upended and completely wrecked, off by more than 5% today.
One idea worth mentioning, triple upside semis is now OS in Exodus. The track record for this signal is flawless, 10-0, over 10 trading days.
As of now, I am not quick to jump into the market, only because I just took a bunch of losses. I can still feel the knife wounds in my chest. I am long TZA and SQQQ too, which might be a dangerous trade heading into the close. It’s entirely possible that the near term lows are being put in now. Ideally, Exodus can spit out an oversold signal for the overall market and we can mean revert this bitch higher again.
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